PART II SPECIFIED ACTIVITIES

Chapter VIIISafeguarding and Administering Investments

Exclusions

Acceptance of responsibility by third party41

1

There are excluded from article 40 any activities which a person carries on pursuant to arrangements which—

a

are ones under which a qualifying custodian undertakes to the person to whom the assets belong a responsibility in respect of the assets which is no less onerous than the qualifying custodian would have if the qualifying custodian were safeguarding and administering the assets; and

b

are operated by the qualifying custodian in the course of carrying on in the United Kingdom an activity of the kind specified by article 40.

2

In paragraph (1), “qualifying custodian" means a person who is—

a

an authorised person who has permission to carry on an activity of the kind specified by article 40, or

b

an exempt person acting in the course of a business comprising a regulated activity in relation to which he is exempt.